As we enter into the age of the Great Resignation, many companies have found themselves scrambling to fill vacant positions with enough warm bodies to simply keep the lights on and continue doing business. This has probably led to you or your company making a few bad choices when it comes to hiring as you are willing to hire just about anyone that will come in for an interview.
With the average cost of hiring a new employee hovering around $4400 and the average time it takes to fill a position is taking 36-42 days it’s no wonder organizations are exhausting a lot of energy and resources looking outward to find people. But if we dig a bit deeper into the data there are a few other factors you may want to consider
The cost of a bad hire to any company ends up being about 30% of their annual wages. This may not seem like much for a large organization, but if you are a small business this adds up to a significant portion of your revenue.
Compile this with the loss of productivity from your strong team members and managers, the impact on company culture, not to mention the potential loss of clients and customers… well I think you see how this is a recipe for disaster if you plan to be in business for the long term.
All this is probably not much of a surprise to you as you are probably looking for a new team member while you read this article. And if you plan to grow your business it stands to reason that you will need to add some quality team members to do it. But let’s take a step back and re-think this equation.
With so much emphasis being made towards recruitment, what are you doing for the people that you already have on board? How are you planning to keep them happy? If you are constantly looking outward for new people, what message are you sending to the team you are relying on to do the work now? How are you investing your time, energy and limited resources on them?
Here’s a simple action that may help you- Stop focusing all your efforts on recruiting, and start focusing on Retention!
Study after study has proven that engaged and motivated team members are up to 20% more productive in the workplace than the average employee. Gallup tells us 51% of team members are disengaged in the workplace, and 13% are ACTIVELY disengaged at work. This leaves a lot of room for improvement and completely explains why people are leaving companies in record numbers.
Instead of thowing $$’s out the window at a limited pool of talent, take those dollars and double down on the team you already have.
Think about it logically. Anyone that wants a job at this moment in time already has one. The truly talented individuals are busy interviewing companies right now, not vice versa. They are busy vetting out companies that they think will be a good fit for them, and guess what? They can be as choosy as they like right now. Pretty sure they will talk to some of your existing team members and find out what it’s like to work for your organization, and if the answer isn’t a resounding “This is the best place or the best boss I’ve ever had” than they are done, done and on to the next one.
Your best source of recruiting in the near term is going to be your existing employees. When they are out with friends and family over the coming weeks and months, talking about their jobs and their employer, what will they say? How will they convey the value of their current workplace? What are they planning to post on their social channels?
Take a look at your current work culture. Are you competitive with pay and benefits? Have you invested in your leaders to make sure they are walking the talk of your culture? Are you focusing your energy and efforts on creating an attractive work environment? And most importantly have you asked yourself lately- Would I want to work here?
Recruiting is always going to be part of your business and let’s be honest, it never stops. You will always be on the hunt for talented individuals if you plan to be competitive in the modern business world. But for the time being your energy and resources may be better suited to start looking inward and focus your attention at this moment in time on Retention.
Ask yourself this week:
What are 3 things I can do to improve our work culture?
What team members can we not afford to lose to another organization, and what is my plan to keep them?
People work for people, not companies- How do my people feel about me or their supervisors? What tools or training am I providing to them so they feel valued and appreciated?
In 2022, the name of the game is to focus on retention first, then recruitment.
Thoughts for the week:
Take care of your employees and they will take care of your business. It’s as simple as that. –Richard Branson
Everyone talks about building a relationship with your customer. I think you build one with your employees first. – Angela Arendts
Treat your employees like they make a difference, and they will. – Jim Goodnight
When you have a problem or an issue with one of your team members ask yourself- If this person was my most valuable customer or client, how would I handle the situation? Then remind yourself that your team members are you most valuable customer. – Coach Tim
Looking forward to our next connection